Regulation E11(5)
1.—(1) A declaration shall specify—
(a)the part of the retirement pension allocated; and
(b)which alternative benefit it is to provide.
(2) The part allocated, which shall be expressed as a whole number of pounds, shall not exceed the lower of—
(a)one-third of the annual rate of the retirement pension, disregarding any National Insurance modification under Part I of Schedule 9; and
(b)the amount that would result in the reduction of that rate to less than the rate of, as the case may be, the annuity mentioned in regulation E11(2)(a) or the subsequent annuity mentioned in regulation E11(2)(b),
and shall not be such as to affect any equivalent pension benefits.
(3) The part allocated shall not be such as to cause the retirement pension payable to be less than the guaranteed minimum in relation to employment before 6th April 1997.
2.—(1) A person who, with a view to making an allocation, gives the Department at least 4 months' notice of his intended retirement is referred to in this Schedule as a “retiring employee”.
(2) For the purposes of this Schedule a person’s relevant birthday is—
(a)where retirement benefits become payable by virtue of regulation E4(3) (female early age retirement), her 55th; and
(b)where retirement benefits become payable by virtue of regulation E4(7) (premature retirement), his 50th;
(c)in any other case, his 60th.
3.—(1) Before delivering a declaration a person shall have given the Department written notice of his intention to make an allocation.
(2) The notice specified in sub-paragraph (1) shall be given—
(a)in the case of a retiring employee, no later than his application for payment of retirement benefits; and
(b)in any other case, no earlier than 4 months before the later of—
(i)the date on which the person becomes qualified for retirement benefits; and
(ii)his relevant birthday.
4.—(1) Before delivering a declaration a person shall also, at his own expense—
(a)have satisfied the Department as to his health; and
(b)have provided the Department with such information about the person for whose benefit the allocation is to be made, and verified it in such manner, as the Department may reasonably require.
(2) In order to satisfy the Department as to his health the person shall have been examined by a medical practitioner nominated by the Department; he may if he wishes be examined by a second such practitioner if the Department is not satisfied as a result of the first examination.
5.—(1) On receiving a notice under paragraph 3 the Department shall notify the person in writing of—
(a)the amount or estimated amount of his retirement pension;
(b)the name and address of any medical practitioner nominated under paragraph 4(2); and
(c)the time within which any declaration is to be delivered.
(2) A declaration shall be delivered—
(a)if the person is resident outside the United Kingdom, within 4 months; and
(b)in any other case, within 3 months,
after receipt of the Department’s notification under sub-paragraph (1).
(3) If the Department is satisfied as to the person’s health, and with the information provided in accordance with paragraph 4(1)(b), it shall send him a suitable form on which to make the declaration.
(4) On the delivery to it of a declaration, the Department shall provide the person making it with written particulars of the alternative benefit.
6. A declaration, and any notice or other communication under this Part, may be sent by post.
7.—(1) Subject to sub-paragraphs (2) to (6), a declaration takes effect on the day on which it is delivered to the Department.
(2) A declaration cannot take effect before the person’s relevant birthday.
(3) A declaration has no effect if either the person making it or the person for whose benefit the allocation was to be made dies before the material time.
(4) In the case of a declaration made by a retiring employee the material time is the later of—
(a)the day after that on which the declaration is delivered; and
(b)the day before that on which he becomes entitled to payment of retirement benefits.
(5) In any other case the material time is the day on which the declaration is delivered.
(6) A declaration may be revoked or varied by a further declaration delivered—
(a)in the case of a retiring employee, before the day on which he becomes entitled to payment of retirement benefits; and
(b)in any other case, before the day on which the original declaration is delivered.
8.—(1) An allocation takes effect on the day on which the person making it becomes entitled to payment of retirement benefits.
(2) For the purposes of sub-paragraph (1), if a person other than a retiring employee dies in pensionable employment after his declaration has taken effect, he shall be taken to have become entitled to payment of retirement benefits on the date of his death.
9.—(1) If notice of intention has been given under paragraph 3 and by the later of—
(a)the date of the person’s becoming entitled to retirement benefits; and
(b)his relevant birthday,
no declaration has been delivered, then, from the later of those dates until he has either delivered a declaration or failed to satisfy the Department as mentioned in paragraph 5(3), one-third of his retirement pension may be withheld.
(2) Any resulting underpayment or overpayment shall be adjusted in due course.
10.—(1) If after a retiring employee has delivered a declaration the rate of his retirement pension is increased, otherwise than under the Pensions (Increase) Act (Northern Ireland) 1971(1), the part allocated is correspondingly increased.
(2) Sub-paragraph (1) applies even if the increase in the retirement pension takes effect from a date earlier than the date of delivery of the declaration.
(3) The corresponding increase in the part allocated, which shall be rounded down to the nearest pound, takes effect from the same date as the increase in the retirement pension.
(4) If the alternative benefit is the one described in regulation E11(2)(b) (annuity for declarant followed by annuity for surviving spouse), the resulting increase in the first of those annuities takes effect from the same date as the increase in the retirement pension.
11. If after a person has delivered a declaration the rate of his retirement pension is reduced, the declaration continues to have effect but the part allocated is reduced to any extent necessary to secure that the restrictions in paragraph 1(2) are still complied with.
1971 c. 35 (N.I.) Part I of the Act has been amended by Article 23(1) of, and paragraphs 8 to 10 of Schedule 6 to the Superannuation (Northern Ireland) Order 1972 (S.I. 1972/1073 (N.I. 10)); Articles 5(2) and (3) of the Pensions (Increase) (Northern Ireland) Order 1974 (S.I. 1974/1267 (N.I. 2)); Article 74(2) of, and Schedule 6 to the Social Security Pensions (Northern Ireland) Order 1975 (S.I. 1975/1503 (N.I. 15)) and Article 2 of the Pensions Increase (Reduction of Qualifying Age) Order 1972 (S.R. & O. (N.I.) 1972 No. 264)). See also Articles 69 and 69A of the Social Security Pensions (Northern Ireland) Order 1975 (S.I. 1975/1503) (N.I. 15) which have effect as if they were contained in Part V of that Act. Article 69A was inserted by the Social Security (Northern Ireland) Order 1979 (S.I. 1979/396 (N.I. 5)); Article 10(3) Part I of the Act has also been amended by the Pensions (Miscellaneous Provisions) (Northern Ireland) Order 1990 (S.I. 1990/1509 (N.I. 13))